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During the past 20 years, I have been part of an exciting process. I call it as a Reliance process. It has created wealth for over 5 mi...

8220;During the past 20 years, I have been part of an exciting process. I call it as a Reliance process. It has created wealth for over 5 million Indian families and has brought dramatic improvement in their quality of lives. It is this feeling which gives me great satisfaction8221; Dhirubhai H. Ambani 8211; Chairman Reliance group.

Think of it 8211; if one Dhirubhai can do so much, what can thousands of Dhirubhais and their companies do for the country. The problem is, we have always looked at a private entrepreneur with suspicion 8211; we have been conditioned to think that people like Dhirubhai would only be interested in creating wealth for their own families. True, they would certainly accumulate wealth, but in the process if millions of people are benefited who gains? I feel it8217;s a big gain for the country. The economic growth in any country is based on a simple principle 8211; for every rupee invested, we must earn more.

The savings thus could be reinvested 8211; and the growth cycle goes on. The government controlled establishments and undertakings have followed exactly and the cycle goes on. An investment of a rupee gives a lesser output 8211; so the government has to subsidise the deficit to make good the loss and consequently the public would be taxed to square up the deficit. If such an establishment runs a monopoly business 8211; it would directly recover the deficit from people. I think there can be no better example than Indian Airlines the slogan on time every time8217; fits well for the fare revision flights rarely meet this condition.

As an entrepreneur the track record of our government has been extremely poor compared to private sector. Yet it has always hesitated to give a bigger role to private sector in various segments of our economy. Let us have a look at some of the facts and figures:
Most of the state owned transport undertakings are in heavy losses. On the other hand a private transport company would make profits and add to its fleet every year by reinvesting the savings.

There has been a massive reduction in the prices of large sized public telephone exchanges after DoT started sourcing equipment from private companies.

Customer care and service systems at private banks are far more superior compared to their counterparts in public sector.

Hotels, and resorts, owned and managed by private groups have shown a much higher growth compared to state run hotel and tourism corporations.

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There would be an endless list of similar facts. The government must adopt a business like approach and quickly look for areas where private sector can contribute effectively. Sectors like insurance, postal services, power, water supply, transport, public works and many other areas need to be given top priority for privatisation.

Finally a world of caution. The private transporter may operate buses only on the profitable routes and that too at peak hours 8211; who would service passengers on other routes, a basic telephone service provider may focus only on cities and thickly populated zones 8211; what would happen to small townships and rural areas? The solution to such problems is to secure commitments from private companies and set up appropriate regulatory authorities to ensure compliance.

Regulation instead of restriction would be the best way out.

The writer is working with a multinational firm based at Mohali